Collective2

For more detailed information visit: http://www.etfcreditspreads.com

Thank you for looking at my trading plan. I have been trading options for over 15 years and have a positive track record for multiple years on Collective 2.

Index Spreads is a very simple system with a goal of making 8-16% return on investment per month. The overall goal is to make 60% per year on capital invested (on average). These are only goals and no performance can be guaranteed.

This system sells a call or put spread on the SPY etf when the S&P 500 is overbought or oversold. To determine this, I use a tool that I have customized to work with the parameters of this strategy. I will use this tool roughly 90% of the time, the other 10% being discretionary.

I sell credit spreads with half of the Collective 2 balance. Collective 2 charges margin for both sides of an iron condor (put and call spread in the same month). This allows a put and call spread to be opened in the same month.

Most brokers only charge for 1 side of an iron condor. It is (obviously) an individual's choice on how much capital to allocate per spread. Everyone’s account and circumstances are different, but it is wise to have some reserve capital for the occasional adjustment of a position.

I look for an 8% ROI on each spread. If conditions are met, we will have an opportunity to open a put and a call spread, creating the possibility of a return on investment of around 16%.

Here is an actual past trade and how ROI is calculated:

On 6/13/12 we bought the SPY 145 options for .08 and then sold the 140 options for .49. the credit received for this spread was .41. There was 5 points between the 140 and 145 strikes and each point requires $100 in margin. I always use 5 points between strikes for each spread equaling $500 margin required. Our credit was $41 or 8.2% of $500. ($41 divided by $500)

Here is what I provide with each subscription:

Exact strikes and credit objective per trade.

A vested interest in the system's performance- I trade this system in my personal accounts.

Quick and clear communication to questions.

Briefing at the end of expiration detailing the past month and what we will be looking forward to in the upcoming weeks.

There are obviously other details and nuances to this system. For more information or if you have any questions, feel free to contact me.

NOTE: You will be able to make significantly better after-commision returns than those reflected here on Collective 2 if you use a discount options broker.

Thanks,
Dave